President Biden’s so-called Build Back Better proposal includes a $7,500 tax credit for purchasing electric cars, but union-built electric cars qualify for an extra $4,500 taxpayer subsidy. That means a Tesla doesn’t qualify for the extra subsidy because its workers are not unionized.
The United Auto Workers union was a big supporter of the Democratic ticket, and this is one of their payoffs.
RedState includes the breakdown in their report.
— A credit of up to $7,500 for an electric or plug-in hybrid vehicle, defined as a car with a battery capacity of at least 40 kilowatt-hours and a gas tank, if any, under 2.5 gallons.
— An additional $500 credit for a car with a battery pack made in the U.S.
— An additional $4,500 credit for cars assembled at a unionized U.S. plant. Currently, only plants owned by GM, Ford, and Stellantis qualify (formerly, Fiat-Chrysler).
A CBS analyst tells RedState there is also an income limit to qualify for the credit: $500,000 for married couples and $250,000 for single buyers.
Kristin Dziczek, senior vice president of research at the Center for Automotive Research, told CBS how the credit works.
“This credit is at the point of purchase — it’s not a credit that you apply for.”
Credits are not refundable. They are called ‘tax credits’ because they cannot exceed the tax liability of the purchaser.
Reason Magazine reports that Biden made his preference for union jobs in swing state Michigan while visiting a UAW job training center.
“I want those jobs here in Michigan,” he declared — rather than in states like Tennessee or Kentucky, where UAW membership is less of a certainty.
Biden is also proposing a new methane tax on oil and gas producers, which is another way to push his green agenda by making gas-powered cars more expensive.
The Sentinel will continue to report on outlandish spending proposals in Biden’s $3+ trillion spending plan in the days leading up to the Senate vote. There is no date set for the Senate vote at this writing.